HF 1562

as introduced - 88th Legislature (2013 - 2014) Posted on 03/14/2013 02:29pm

A bill for an act
relating to data practices; requiring submission to an agency or municipality of
certain documents maintained by a contractor upon request; amending Minnesota
Statutes 2012, sections 16C.05, subdivision 2; 471.345, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 16C.05, subdivision 2, is amended to read:

Subd. 2.

Creation and validity of contracts.

(a) A contract is not valid and the state
is not bound by it and no agency, without the prior written approval of the commissioner
granted pursuant to subdivision 2a, may authorize work to begin on it unless:

(1) it has first been executed by the head of the agency or a delegate who is a party
to the contract;

(2) it has been approved by the commissioner; and

(3) the accounting system shows an encumbrance for the amount of the contract
liability, except as allowed by policy approved by the commissioner and commissioner of
management and budget for routine, low-dollar procurements.

(b) The combined contract and amendments must not exceed five years without
specific, written approval by the commissioner according to established policy, procedures,
and standards, or unless otherwise provided for by law. The term of the original contract
must not exceed two years unless the commissioner determines that a longer duration is
in the best interest of the state.

(c) Grants, interagency agreements, purchase orders, work orders, and annual plans
need not, in the discretion of the commissioner and attorney general, require the signature
of the commissioner and/or the attorney general. A signature is not required for work
orders and amendments to work orders related to Department of Transportation contracts.
Bond purchase agreements by the Minnesota Public Facilities Authority do not require
the approval of the commissioner.

(d) Amendments to contracts must entail tasks that are substantially similar to
those in the original contract or involve tasks that are so closely related to the original
contract that it would be impracticable for a different contractor to perform the work. The
commissioner or an agency official to whom the commissioner has delegated contracting
authority under section 16C.03, subdivision 16, must determine that an amendment would
serve the interest of the state better than a new contract and would cost no more.

(e) A fully executed copy of every contract, amendments to the contract, and
performance evaluations relating to the contract must be kept on file at the contracting
agency for a time equal to that specified for contract vendors and other parties in
subdivision 5.

(f) The attorney general must periodically review and evaluate a sample of state
agency contracts to ensure compliance with laws.

new text begin (g) An agency contract must require the contractor, upon request of the agency, to
submit to the agency a copy of any subcontract entered into under the prime contract. An
agency may make a request under this paragraph at its own discretion, provided that it
must request a copy of a subcontract from the contractor if an individual submits a request
to the agency for that document. A fully executed copy of every contract, subcontract,
amendment to a contract or subcontract, and performance evaluation related to the contract
received by the agency must be kept as required by section 15.17 and chapter 138. The
Minnesota State Colleges and Universities is an agency for purposes of this paragraph.
new text end

Sec. 2.

Minnesota Statutes 2012, section 471.345, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Subcontractor contracts. new text end

new text begin (a) A municipal contract must require the
contractor, upon request of the municipality, to submit to the municipality a copy of any
subcontract entered into under the prime contract. A municipality may make a request
under this paragraph at its own discretion, provided that it must request a copy of a
subcontract from the contractor if an individual submits a request to the municipality
for that document.
new text end

new text begin (b) A fully executed copy of every contract, subcontract, amendment to a contract
or subcontract, and performance evaluation related to the contract received by the
municipality must be kept by the municipality as required by section 15.17 and chapter 138.
new text end

new text begin (c) For purposes of this subdivision, a contract includes the definition provided in
subdivision 2 and also includes a contract for professional services.
new text end